AskFast
Total Latency
9.2s
Total Cost
$0.0022
Total Tokens
12.9k
Observations
7
Trace Input / Output
Does OI stand for OPen Interest? What does that mean?
Scores (1)
faithfulness_score: Hallucinations (14/16): [1] **Yes – OI stands for *Open Interest*.** | [2] ### What Open Interest Is → **Definition:** The total number of outstanding derivative contracts (futures, perpetual swaps, options, etc.) that have been opened and not yet closed or settled | [3] ### What Open Interest Is → **How it’s counted:** Every time a new long + short pair is created (a trade is opened), OI increases by one contract. When either side closes the position, OI decreases by one | [4] ### Why It Matters → | Situation -- **OI rising + price rising** | What OI Tells You -- New money is flowing in on the bullish side – a healthy up‑trend. | | [5] ### Why It Matters → | Situation -- **OI rising + price falling** | What OI Tells You -- New money is entering on the short side – a bearish bias, or a possible “short squeeze” if longs later step in. | | [6] ### Why It Matters → | Situation -- **OI falling** | What OI Tells You -- Traders are exiting positions; the market may be losing conviction (could precede a breakout or a calm‑down). | | [7] ### Why It Matters → | Situation -- **Very high OI at a key level** | What OI Tells You -- Large pool of contracts waiting to be liquidated if price breaks that level – often a support/resistance zone. | | [8] ### How OI Is Used in Crypto Trading → **Confirm Trend Strength** – Combine OI with price action. A bullish move with expanding OI is stronger than a move on shrinking OI | [9] ### How OI Is Used in Crypto Trading → **Spot Potential Reversals** – If price spikes up while OI sharply drops, many traders are closing longs, hinting at a possible pull‑back | [10] ### How OI Is Used in Crypto Trading → **Assess Liquidation Risk** – On highly leveraged perpetual markets, a huge OI near a price level can lead to mass liquidations if the market swings past that point | [11] ### How OI Is Used in Crypto Trading → **Gauge Market Sentiment** – On‑chain funding rates plus OI give a picture of who’s paying whom (longs vs. shorts) | [14] ### Bottom Line → **Open Interest ≠ Volume.** Volume measures how many contracts traded in a period; OI measures how many are *still open* | [15] ### Bottom Line → **Higher OI = More capital at stake**, making price moves around high‑OI levels more impactful | [16] Feel free to ask if you’d like a deeper dive on how OI interacts with funding rates, liquidation maps, or a specific token’s futures market
Message Context
User
Does OI stand for OPen Interest? What does that mean?
AI
**Yes – OI stands for *Open Interest*.** ### What Open Interest Is - **Definition:** The total number of outstanding derivative contracts (futures, perpetual swaps, options, etc.) that have been opened and not yet closed or settled. - **How it’s counted:** Every time a new long + short pair is created (a trade is opened), OI increases by one contract. When either side closes the position, OI decreases by one. ### Why It Matters | Situation | What OI Tells You | |-----------|-------------------| | **OI rising + price rising** | New money is flowing in on the bullish side – a healthy up‑trend. | | **OI rising + price falling** | New money is entering on the short side – a bearish bias, or a possible “short squeeze” if longs later step in. | | **OI falling** | Traders are exiting positions; the market may be losing conviction (could precede a breakout or a calm‑down). | | **Very high OI at a key level** | Large pool of contracts waiting to be liquidated if price breaks that level – often a support/resistance zone. | ### How OI Is Used in Crypto Trading 1. **Confirm Trend Strength** – Combine OI with price action. A bullish move with expanding OI is stronger than a move on shrinking OI. 2. **Spot Potential Reversals** – If price spikes up while OI sharply drops, many traders are closing longs, hinting at a possible pull‑back. 3. **Assess Liquidation Risk** – On highly leveraged perpetual markets, a huge OI near a price level can lead to mass liquidations if the market swings past that point. 4. **Gauge Market Sentiment** – On‑chain funding rates plus OI give a picture of who’s paying whom (longs vs. shorts). ### Quick Example (Fartcoin Context) - **Current OI:** ≈ $284 M total, up ~3 % in the last hour and ~4 % in the last 4 h. - **Interpretation:** Despite a modest price dip, the growing OI suggests fresh long positions are being added. This supports a **bullish bias** for a short‑term bounce, but watch for a sudden OI drop or a funding‑rate flip that could signal a shift. ### Bottom Line - **Open Interest ≠ Volume.** Volume measures how many contracts traded in a period; OI measures how many are *still open*. - **Higher OI = More capital at stake**, making price moves around high‑OI levels more impactful. Feel free to ask if you’d like a deeper dive on how OI interacts with funding rates, liquidation maps, or a specific token’s futures market.
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